Contents

Introduction

Where a Property Authorised Investment Fund (Property AIF) owns shares in foreign entities equivalent to UK Real Estate Investment Trusts (UK-REITs), then these shares will be classed as assets of a property investment business. As specified in CTM48814 of the Property AIF guidance, please find below a list of foreign structures that are considered by HM Revenue and Customs (HMRC) to be equivalent to UK-REITs for the purposes of Regulation 69G of the Authorised Investment Funds (Tax) regulations 2006 (SI 2006/964).

Structures

This list is not likely to be exhaustive and will be updated once further foreign structures are identified as meeting the criteria set out in CTM48814.

Structures in List A are considered to meet all the criteria.

Structures in List B may sometimes meet the criteria. For example, if the jurisdiction allows the structure to be open-ended (having variable share capital) or to be closed-ended (having defined share capital) then providing that the rules for the structure met all other criteria those that were closed-ended would be equivalent to UK-REITs.

Lists last updated on 2 June 2006

List A: Foreign entities equivalent to UK-REITs

Country

Structure

Belgium

Société d’investissement à capital fixe en immobilière

Germany

G-REIT

Israel

REIF

Italy

Società d’Intermediazione Immobiliari Quotate

Where it is considered that a further foreign structure fulfils all the criteria to be treated as equivalent to a UK-REIT, then details can be sent to HMRC:

The details should show why the structure meets the criteria and provide references to relevant foreign legislation.

List B: Foreign entities that may be equivalent to UK-REITs in some circumstances

The structures below will only qualify where they have defined share capital and the market in shares or units is by way of a listing on a recognised stock exchange. Collective investment schemes (such as Property AIFs) where the investor has a right of redemption do not qualify. In some cases there are also other conditions that must be met as indicated below.

Country

Structure

Further conditions

Australia

Listed Property Trust

Unit holders must be entitled to income at year end and consequently trustee not liable to taxation. Income and assets min 75 per cent real property